Preview

Technology Has Made the Accounting Process Easier. Do You Agree or Disagree with This Statement? Discuss Your Answer with Relevant Justification.

Good Essays
Open Document
Open Document
1216 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Technology Has Made the Accounting Process Easier. Do You Agree or Disagree with This Statement? Discuss Your Answer with Relevant Justification.
I agree with the statement “Technology has made the Accounting process easier”. The advancement of information technology and the implementation of user friendly computer system have transformed most processes in the accounting cycle into an automated process which improves the accuracy, speed, efficiency and the convenience of accounting procedures. Accounting software such as UBS and Peachtree is developed with the development of information technologies that make the Accounting process easier. Manual accounting with paper and pen is difficult to find these days with the impact of technology. Companies can now capture, process, store, and transmit data with the help of computers. Whereas data collections and processing were performed manually in historical systems, on-line collection and processing of data are performed by computerized systems. The basic principles of double entry remain the same in computerized or manual accounting system but computerized accounting system has certain significant advantages over the manual accounting system. Firstly, technology helps to improves efficiency and speed in processing the accounting tasks. Speed is the distinguishing feature of information technology. Accountants able to process large amount of transactions more quickly and efficient with the help of computerized accounting system than traditional paper ledgers. Quicker processing time for individual transactions has also lessened the amount of time needed to close out each accounting period. This is because in an integrated accounting system, action taken or single transaction once entered in one part of the system automatically affect and update related accounts, journals and ledgers. There are two categories of data processing in computerized accounting system which is the on-line processing and batch processing. For example of on-line accounting system, when a credit sales is recorded in an integrated accounting system, for instance, several parts of the
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Kudler Fine Foods Case Study
    • 804 Words
    • 4 Pages

    Kudler Fine Foods Case Study

    A good accounting information system (AIS) will help create, maintain, and distribute the financial reports as well as perform tasks in payroll, accounts receivable, accounts payable, inventory, and budgeting (Bagranoff, Simkin, & Norman, 2010). Management will be able to set up controls in the system allowing staff to have access to what is necessary and appropriate for their job. They will be able to call up and modify this information electronically without searching or filling out new paperwork. Data entry will be mainstreamed, allowing for less key strokes, and integration of information. This will allow for better accuracy in accounting and accounts will be able to be managed more efficiently, including processing of bi-weekly payroll. Payroll will then be sent directly to processing and reports to the correct managers. Accounts receivable will be able to track when customers use the POS system and update the sales information. Accounts payable will track when a vendor payment is due, allowing for payment processing, and appropriate management and accounting reports. The inventory system will be more accurate saving Kudler time and…

    • 804 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Case Study
    • 625 Words
    • 3 Pages

    Case Study

    Accounting today is much more complex and difficult to understand than it has been in the past. Due to the increasing complexity Accounting Information Systems have been created to alleviate some of the pressures facing accountants. According to Frederick Jones and Dasaratha Rama (2006), Enterprise Resource Planning (ERP) systems are moving businesses from the functional approach to an integrated approach for managing transactions (p.684). Having knowledge and experience with the technological advances will help the accountant become more successful. Companies, such as CBU from the case study, must be able to effectively use technology to their advantage if they want to be successful in the future. The accounting staff of CBU must be able to develop more timely and effective system controls for future financial statement purposes and inventory audits.…

    • 625 Words
    • 3 Pages
    Good Essays
    Read More
  • Best Essays

    Perceived Threats of Computerized Accounting Information System and Provides Suggestions on How to Prevent the Occurrence of these Potential Dangers
    • 1788 Words
    • 6 Pages

    Perceived Threats of Computerized Accounting Information System and Provides Suggestions on How to Prevent the Occurrence of these Potential Dangers

    With rapid development of the information technology, computerized accounting information system plays an increasingly crucial role in the operation of organization regardless large, medium or small enterprises. This can be contributed to the merits of the marriage of accounting and the computer science technology, which dramatically improve the accuracy and speed of the process of information system. However, along with the advantages of the computerized accounting information system, there emerge several deadly deficiencies which, if not appropriately deal with, can be greatly detrimental to the interests of the organization and, even worse, may lead to collapse of the company. This essay mainly focuses on several important aspects of the deficiency of the computerized accounting information system and then provides feasible solutions to prevent the negative influence derived from these threats.…

    • 1788 Words
    • 6 Pages
    Best Essays
    Read More
  • Powerful Essays

    M1: Compare the Benefits of Using Manual and Computerised Accounting System to Record Business Transactions.
    • 1460 Words
    • 6 Pages

    M1: Compare the Benefits of Using Manual and Computerised Accounting System to Record Business Transactions.

    M1: Compare the benefits of using manual and computerised accounting system to record business transactions.…

    • 1460 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Effects of Technology on the Accounting Profession
    • 427 Words
    • 2 Pages

    Effects of Technology on the Accounting Profession

    New technology in information systems have bought significant changes in accounting profession, practices and processes. It has increased the efficiency and accuracy in accounting and has speed up the process for manual accounting tasks, but also improved security of accounting data and increased transparency. Large organizations and multinationals are changing over to this new information systems and technologies to carry out their accounting tasks on global basis. This information system has led to standardization not only among the different divisions, locations and offices of a single organization, but also on a global basis.…

    • 427 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    D1-Analyze the Circumstances Under Which a Business Would Adopt a Computerized Accounting System Instead of a Manual One.
    • 540 Words
    • 3 Pages

    D1-Analyze the Circumstances Under Which a Business Would Adopt a Computerized Accounting System Instead of a Manual One.

    Computerized accounting offers several more benefits than manual accounting process more information faster, formulas verify calculated totals and errors are less common.…

    • 540 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    ACC340 Week 1 The Effects of Technology on the Accounting Profession
    • 850 Words
    • 3 Pages

    ACC340 Week 1 The Effects of Technology on the Accounting Profession

    There are several advancements in technology that has allowed companies from all different sizes to keep accurate financial data and records as well as decrease or as far as eliminate paper records. Technology has really advanced the accounting field by allowing the ability to process and interpret financial information more effective and efficient. Since technology has advanced with the introduction to the internet, companies now have the options have the ability to grow and expand beyond its region, and create new opportunity to expand internationally. New programs have been developed to assist in the internal operations and profitability. There is also the development of new software, which can help and meet the needs of the industry.…

    • 850 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    The Effects of Technology on the Accounting Profession Paper
    • 555 Words
    • 3 Pages

    The Effects of Technology on the Accounting Profession Paper

    New developments in information systems have bought significant changes in accounting profession, practices and processes. It has not only increased the efficiency and accuracy in accounting and has speed up the process for cumbersome and long accounting tasks, but also improved security of accounting data and increased transparency. Large organizations and multinationals are making increasing use of new information systems and technologies to carry out their accounting tasks on global basis. These information systems has led to a great degree of standardization not only among the different divisions, locations and offices of a single organization, but also on a global basis.…

    • 555 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    How Technology Has Changed the Accounting Profession
    • 3024 Words
    • 13 Pages

    How Technology Has Changed the Accounting Profession

    Thirty years ago, most financial accounting was done manually, leading to a great deal of paperwork. Currently, most accounting information is recorded via computers and wide area networks (Journal of Accountancy, 1994a). Technology has certainly changed the face of accounting over the years. While it is unclear whether technology’s impact on accounting has been positive or negative, it is clear that technology has drastically changed the accounting profession. Often a technological advance may be an asset to a business, but a liability to the firm’s accountant. For example, information can be provided in a timely and more accurate manner, but at the price of confidentiality. Some of the impacts of technology are neither positive or negative; they are simply changes. So in essence, the impacts of technology on accounting have been positive, negative, and neutral, but each impact results in a demand on the profession to conform to the changes.…

    • 3024 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Good Essays

    Effects of Technology on the Accounting Process
    • 755 Words
    • 3 Pages

    Effects of Technology on the Accounting Process

    Technology is constantly increasing and invades every aspect of a person 's life. Accounting professions are no exception and even more so are affected by the information systems that are used within the accounting field. This paper will describe how information systems are changing the various aspects of the accounting profession and include a description of a variety of new technologies and their effects on accounting processes. In addition, this paper will discuss how these technologies have changed the way accounting is performed within the insurance industry at Allstate followed by a conclusion that recaps the major points of the paper.…

    • 755 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Assignment 4: Replacing a Legacy Application
    • 3660 Words
    • 15 Pages

    Assignment 4: Replacing a Legacy Application

    “A reliable information system is a necessity for all companies. Companies must properly maintain accounts and detailed records or face unnecessary costs. A well-devised accounting information system, which ensures relevant and reliable information is reported in financial statements, benefits every type of company” (Pettir - Accounting, 2013). I believe that a company should change to new systems in order to keep up with technology and their competition. An updated “accounting information system can help businesses run better by providing timely information on internal operations” (Small Business-Chron, 2013).…

    • 3660 Words
    • 15 Pages
    Better Essays
    Read More
  • Good Essays

    Accounting Cycle Paper
    • 723 Words
    • 3 Pages

    Accounting Cycle Paper

    References: Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2007). Accounting Information Systems. In (Ed.), Intermediate Accounting (12th ed., pp. 62-124). []. Retrieved from…

    • 723 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    ACC 340: The Effects Of Technology On The Accounting Profession
    • 762 Words
    • 4 Pages

    ACC 340: The Effects Of Technology On The Accounting Profession

    The accounting profession has been around in one way or another for as long as people have traded goods and services. As the transactions between people have become more frequent and complex the accounting profession has become more and more essential and the tools used to perform its functions have become increasingly advanced. For the most part, the days of writing every transaction in a journal and charting and adding accounts on manual charts is gone, replaced by integrated computer systems that often enter transactions into accounts with little or no user interface. These technological advances have…

    • 762 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Manual vs Computerized Accounting
    • 1216 Words
    • 4 Pages

    Manual vs Computerized Accounting

    Ever since Lucas Pacioli wrote about and spread the knowledge of double entry accounting in his “Summa di Arithemetica” in 1494, modern manual accounting was born (Hendrickson, 2007), though manual accounting has existed in many forms since ancient times. In contrast, computerized accounting systems are a more modern invention, as the first computer was invented between 1943 and 1946 (“Great Events in Accounting & Business History”, (n.d.)) and Arthur Anderson first computerized the payroll of General Electric in 1953 (“Great Events in Accounting & Business History”, (n.d.)). Powerful personal computers were not readily available to the average person until the 1980’s and 1990’s.…

    • 1216 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Selection of Accounting Software Using Analytical Hierarchy Process
    • 3324 Words
    • 14 Pages

    Selection of Accounting Software Using Analytical Hierarchy Process

    Understanding the business’s financial information capabilities and weaknesses is critical to selecting the appropriate accounting software solution. Accounting software system seem very important that because not only to have information at fingertips, but also to have more accurate information. The right accounting software can help organizational grows and also provide the efficiency of control and manage the organization’s financial information. When the companies choose one accounting software system, the company should know the challenges that company would expect from using that accounting software system.…

    • 3324 Words
    • 14 Pages
    Powerful Essays
    Read More

Related Topics